In July 2007, Pantheon added another oil and natural gas exploration venture to its Louisiana portfolio. Pantheon farmed-into another project in Iberville Parish, Louisiana.

Detail of Iberville Parish Louisiana

Prospects

The farm-in covered one prospect, Bullseye, with leases covering 1,700 net acres.  Drilling on Bullseye tested deeper fault blocks on the crest of the Laurel Ridge field. Laurel Ridge is a "turtle" feature (inverted basin) feature discovered in 1944 by Humble Oil (ExxonMobil).

At Bullseye two deeper geo-pressured targets were tested with one vertical well. These had pre-drill combined gross best estimate potential reserves (previously described as "P50 potential reserves") of 12.5 million barrels ("mmbo") of liquids and 33 billion cubic feet ("bcf") of natural gas.

The first well, Jumonville #1 commenced drilling in April 2008.  Golden Gate Petroleum is the operator, having farmed-into this prospect on similar terms.

The location is shown in Figure 1.

Figure 1: Location of Bullseye Prospect

Geology and Geophysics of the Bullseye Prospect

The Bullseye prospect's principal attributes may be characterised as:

• Two independent traps mapped by 3D seismic calibrated to the lithology
• An offset well with logs indicating both pay and hydrocarbon shows
• Numerous successful direct local analogues for prospects similar to Bullseye in terms of seismic characteristics and trap geometries

The Bullseye prospect is a deeper pool prospect with targets in the Miocene (Miogyp) and Oligocene (Cib Haz) between 12,400 feet ("ft") and 13,500 ft on the crest of the Laurel Ridge anticline. Laurel Ridge is a "turtle" feature (inverted basin) feature discovered in 1944. Laurel Ridge was discovered by Humble Oil (ExxonMobil). Laurel Ridge produced 146 billion cubic feet ("bcf") of natural gas and four million barrels of oil ("mmbo") from normal pressured sands between 10,100 feet ft and 10,600 ft. These sands are now depleted.

In 2005, 3D seismic acquisition was completed following the abandonment of the Noble #1 Acosta well. Analysis of the seismic data, including calibration to the lithology, identified a clearly independent stratigraphic trap in each of the Miocene and Oligocene. The high impedance sands are identified as high amplitude positive reflections within a much thicker shale section. See Figure 2.

Figure 2: 3D Seismic Profile: Proposed Location and Offset well w/log pay

The Jumonville #1 well location is 3,000ft offset to the Noble #1 Acosta well drilled in 2005. This well was plugged due to mechanical difficulties. The Oligocene target was not reached by the latter well, but both electric and mud logs were obtained for the Miocene. Electric logs indicated some 50ft of low resistivity-low contrast pay (see Figure 3). Mud log data indicated possible natural gas and condensate shows across the Miocene section.

The Jumonville #1 planned to test both Miocene and Oligocene. In surrounding analogue fields both the Miocene and Oligocene reservoirs are considered high quality. Porosity ranges between 24 to 30% and permeability between 300 to 1,000mD. Producing well rates from surrounding analogue fields range from 500 to 1,000 barrels per day of oil and 4 to 10 million cubic feet of gas per day. A number of these analogue fields are similar to Bullseye in terms of seismic characteristics and trap geometries.

The Jumonville #1 well was completed in September 2008 as a Miocene (Miogyp) producer with an initial gross output of 520 bopd and 300 mcfd. Drilling problems precluded this well from reaching the Oligocene (Cib Haz). A follow up well Jumonville #2 spudded in December 2008 and reached TD in the Cib Haz in April 2009. Testing of the Cib Haz produced no fluid. After this unsuccessful test the decision was made to complete Jumonville #2 as a Miogyp producer. Jumonville #2 came on stream in late June at a gross rate of 750 bopd and 250 mcfd.  Both the #1 and #2 wells penetrated a shallower zone, the Camerina , where sidewall cores and logs indicated pay. Neither well tested this zone. A reserve study for Bullseye has been commissioned.

Prior to completing Jumonville #2 the Noble Acosta well was re-entered in an attempt to drill up-dip from the old well bore. This well was completed in December 2008.  However the Miogyp formation tested only water and this well was later converted into a water disposal well.

Figure 3: Log Pay versus Wet Sand